Decentralised Grain Storage Plan in Cooperative Sector
The Decentralised Grain Storage Plan in Cooperative Sector, launched on 31 May 2023 as a Pilot Project, represents a significant government initiative to strengthen India's agricultural storage infrastructure through Primary Agricultural Credit Societies (PACS). The plan addresses the country's growing food storage needs amid estimated foodgrain production of 376.563 million tonnes in 2025-26, which is 5.3% higher than the previous year's production of 357.732 million tonnes, and supports the National Food Security Act that covers approximately 80 crore people.
The implementation framework operates through convergence of multiple government schemes: Agriculture Infrastructure Fund (AIF) provides financing and interest subvention, Agricultural Marketing Infrastructure (AMI) scheme offers 33.33% back-ended capital subsidy (increased from 25%), Sub Mission on Agricultural Mechanization (SMAM) facilitates Custom Hiring Centres, and Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) promotes food processing units. This integrated approach allows PACS to develop storage infrastructure including silo-based facilities of 50 MT, 100 MT, and 200 MT capacities, along with custom hiring centers, fair price shops, and primary processing units.
Financial viability measures include reduced margin money requirement from 20% to 10%, revised cost norms for godown construction, and combined financial support that results in an effective loan interest rate of 1% for PACS through NABARD's special refinance facility and AIF's 3% interest subvention. FCI has been authorized to provide assured hiring of eligible godowns created under the plan, enhancing project sustainability.
Implementation progress shows significant expansion from the initial pilot phase covering 11 PACS across 11 states (Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, Madhya Pradesh, Uttarakhand, Tamil Nadu, Telangana, Assam, Karnataka, and Tripura) with 9,750 MT capacity. As of July 2026, godown construction has been completed in 313 PACS nationwide, creating over 1.80 LMT of storage capacity, with 1,012 PACS or cooperative societies identified under the plan.
The institutional framework involves National Cooperative Development Corporation (NCDC) as implementing agency, with coordination through Inter-Ministerial Committee at national level, State Cooperative Development Committees, and District Cooperative Development Committees that identify and approve PACS based on storage demand and land availability criteria.
A case study of Nerpingalai PACS in Amravati, Maharashtra demonstrates practical implementation: construction of a 3,000 MT warehouse supported by AMI and AIF schemes, serving approximately 300 farmers storing 32,000 bags of soybeans. The PACS provided advances of ₹4.50 crore against stored produce, generating expected annual rental income of ₹7.68 lakh and interest income of ₹54 lakh while creating local employment opportunities.
Quality standards require compliance with Warehousing Development and Regulatory Authority norms, use of durable corrosion-resistant materials, proper ventilation systems, and regular inspections. Uniform branding guidelines with approved grain storage logo and color scheme ensure recognizable identity across all facilities. Project Management Consultants monitor construction progress and expenditure for transparency.
The initiative aims to reduce foodgrain wastage, minimize transportation costs between procurement centers, provide farmers better price realization by avoiding distress sales, and strengthen rural cooperative institutions through diversified agricultural activities and income opportunities.